Circle Makes Power Play: Secures Federally Regulated Trust Status for Stablecoin Dominance
Stablecoin giant Circle just leveled up—and Wall Street's watching.
The crypto powerhouse is gunning for federally regulated trust status, a move that'll let it hold its own reserves and dive into custody services. No more begging banks for favors.
Why this matters
This isn't just paperwork—it's a direct challenge to traditional finance's chokehold on digital assets. Circle's betting that regulators will trust a crypto-native player more than legacy institutions that still think 'blockchain' is a ski resort term.
The custody endgame
With this status, Circle could become the one-stop-shop for institutional crypto. Want yield on your stablecoins? Check. Need fortress-grade custody? Done. All while wearing the SEC's stamp of approval like a bulletproof vest.
The cynical take
Because nothing says 'financial revolution' like begging permission to play by the old system's rules. But hey—if you can't beat 'em, get licensed to custody their money.
Expanding licensing movement
Circle issued the first New York Department of Financial Services BitLicense in 2015, which gave it a head start in complying with the European Union’s Markets in Crypto-Assets framework last year.
In April, the Abu Dhabi Global Market in principle approval to operate as a money services provider. Circle said the OCC filing extends that licensing strategy to the US at the federal tier rather than the state level.
The trust bank will act as a wholly owned subsidiary of Circle Internet Group. It will maintain capital and liquidity according to OCC rules and submit to regular examinations. Circle did not provide a launch timeline. OCC evaluations of trust charter applications typically span several quarters.
In its announcement, Circle noted that institutional clients have pressed stablecoin issuers for federally regulated custody options as US lawmakers debate reserve mandates and disclosure standards.
By holding reserves at a national trust, Circle aims to streamline compliance ahead of the potential passage of the GENIUS Act while reducing counterparty risk for large depositors.
